Worldwide Adoption of IFRS

949 Words4 Pages
What are the benefits for foreign firms to cross list in the US markets? Do the benefits remain after the SOX? Do you think the benefits would remain unchanged after the worldwide adoption of IFRS? Foreign companies are always looking for a new country to plant a flag and expand their global market place. One of the ways that they do this in the business world is through a process called cross listing. This practice allows a company owned and operated in Country A to list their company in Country B’ s financial trading exchange. Some have argued that introduction of Sarbanes-Oxley (SOX) and the ongoing plans of convergence between US GAAP and IFRS have decreased the need for cross listing. While there is a difference of opinion as to…show more content…
However, the true consequences of this move to a global standard could not be determined until the framework of these standards was complete and implementation has taken place with U.S. and foreign firms. In closing, I consider cross listing a beneficial practice for foreign firms. I agree that we are living in an Internet world where I can invest in German company with a few clicks of a mouse. I also agree that we are heading towards a global accounting standard that will level the playing for all companies of all sizes in all countries. However, the benefit of cross listing that I see never going away is the visibility. Having a tangible presence in developed countries is key to growth. Having a presence in developing countries is a stepping-stone to bigger growth opportunities in the future. Bibliography "Cross Listing." Wikipedia. Wikimedia Foundation, 17 Jan. 2013. Web. 20 Jan. 2013. Dobbs, Richard, and Marc Goedhart. "Why Cross-listing Shares Doesn 't Create Value." McKinsey Quarterly Autumn 2008 29 (2008): n. pag. Print. Reese, William, Jr., and Michael Weisbach. "Protection of Minority Shareholder Interests, Cross-listings in the United States, and Subsequent Equity Offerings." NBER. Journal of Financial Economics, 2002. Web. 20 Jan. 2013. Zhu, Hong, and Ken Small. "Has Sarbanes-Oxley Led to a Chilling in the U.S. Cross-Listing Market." Has Sarbanes-Oxley Led to a Chilling in the U.S. Cross-Listing Market.
Get Access